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3. Consider a bank with the following balance sheet: Liabilities Assets $525,000,000 Deposits $50,000,000 Reserves $475,000,000 Loans This bank can liquidate loans at 67 cents
3. Consider a bank with the following balance sheet: Liabilities Assets $525,000,000 Deposits $50,000,000 Reserves $475,000,000 Loans This bank can liquidate loans at 67 cents on the dollar. Meaning they can sell a $1 loan for $0.67. a. (2 points) Compute the reserve ratio for this bank. b. (4 points) Suppose depositors arrived and withdrew $40,000,000. Show the bank's new balance sheet. Would the bank need to liquidate any loans? c. (4 points) Suppose depositors arrived and withdrew $75,000,000. Show the bank's new balance sheet. Would the bank need to liquidate any loans
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